Zanganeh: Oil price to rebound if Iran bans lifted
Oil Minister Bijan Namdar Zanganeh said the lifting of economic sanctions imposed against Iran over its nuclear program can help rebound oil prices to a logical level, IRNA reported.
"With the removal of sanctions against Iran, the trend of global oil price will become rational," Zanganeh also told Mehr News Agency on Friday, adding that the lifting of economic embargoes against Iran could shore up oil prices.
Zangeneh also said falling oil prices would not have an impact on the construction of mini liquefied natural gas (LNG) refineries in South Pars oil and gas field.
"The plummeting global oil price has no impact on the economic justification for building the LNG refineries. Undoubtedly, the construction of these refineries will be carried out according to schedule," he said.
Zanganeh also said there is no red line for cutting oil output in the Organization of Petroleum Exporting Countries (OPEC).
The Iranian official's remarks followed oil price surge on the heels of the death of Saudi Arabia's king on Friday. Uncertainty, however, still lingers in the energy markets, as investors are watching to see if the kingdom will change its oil production policy amid plunging prices.
US benchmark West Texas Intermediate for March delivery rose more than 2 percent to a high of $47.76 a barrel in early Asian trading after the Saudi royal court announced the death.
Brent crude for March also jumped $1.09 to $49.61.
The Saudi king's death that triggered a rise in oil prices comes after months of steep falls caused by slowing global economic growth, oversupply of the black gold and the unlikely chance that the OPEC might cut crude output.
Saudi Arabia is a key member of the OPEC body. The kingdom's decision in late November not to slash output levels led to further falling prices.
Oil prices have plunged about more than 50 percent since June last year.